BetMGM Trimming Staff at New Jersey Headquarters, as Online Gaming Firm Labors

Posted on: March 4, 2025, 04:42h. 

Last updated on: March 4, 2025, 04:42h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • BetMGM is terminating 83 employees in New Jersey
  • The layoffs are at BetMGM’s headquarters
  • BetMGM is primarily engaged in sports betting and iGaming

BetMGM is reducing its overhead at its New Jersey headquarters by showing dozens of workers the door.

BetMGM New Jersey sports betting iGaming
The BetMGM Sportsbook at Gila River Resorts and Casinos Lone Butte in Chandler, AZ. BetMGM is scaling back its workforce at its headquarters in New Jersey. (Image: Shutterstock)

In North America, BetMGM is a 50-50 partnership between MGM Resorts International and Entain. The iGaming and sportsbook platform and retail sports betting provider informed the New Jersey Department of Labor & Workforce Development that it will terminate 83 positions at its corporate offices by May 27, 2025.

The disclosure came via a WARN Notice, or a “Worker Adjustment and Retraining Notice.” Federal and state law requires employers in New Jersey with 100 or more employees to give advanced notice about closings and mass layoffs.

In 1988, Congress passed the WARN Act to provide affected workers with as much time as possible to find new employment before being let go.

Startup to Slowdown

BetMGM, like so many other sports betting startups in the aftermath of the May 2018 landmark decision from the U.S. Supreme Court that gave states the right to determine if sports gambling is legal, invested heavily in trying to grab as much market share as possible.

As the sports betting industry matured, however, FanDuel and DraftKings secured the lion’s share of the consumer pool. FanDuel and DraftKings had considerable head start advantages because they were previously invested in fantasy sports, and many fantasy sports bettors naturally transitioned to sports betting.

According to our friends at Casino Reports, as of February, BetMGM controlled about 8% of the legal sports betting market in the U.S. Market share is based on handle, or the amount of money risked by bettors.

FanDuel is the top dog at 37% and DraftKings is a close second at 35.5%. BetMGM is a distant third, Caesars Sportsbook is fourth at 5%, and ESPN Bet rounds out the top five at a little more than 3%.

DraftKings and FanDuel successfully converted most of their DFS players to their mobile sportsbooks. BetMGM, meanwhile, relied on converting MGM Resorts guests enrolled in the casino company’s rewards program.

Of course, not all casino guests and even slots and table game players are sports bettors. BetMGM has seemingly learned that fact as it struggled to ramp up its sportsbook player base to compete with FD and DK.

Converting MGM’s in-person guests to online gambling is presumably easier for iGaming. But online slots and interactive table games remain limited to only seven states. BetMGM is active in only four, and no additional states seem likely to join the iGaming industry anytime soon.

As a result, BetMGM is scaling back its employment costs. 

BetMGM Outlook 

Last month, MGM Resorts reported that BetMGM revenue totaled $2.1 billion in the firm’s 2024 fiscal year, a 13% improvement from 2023. The company made about $624 from its sports betting operations, with all but $70 million coming online. iGaming GGR was almost $1.5 billion.

Despite the uptick in revenue, BetMGM earnings before interest, taxes, depreciation, and amortization (EBITDA) remained negative at a loss of approximately $244 million, with much of the loss credited to ongoing acquisitions like LeoVegas and Tipico’s U.S. sportsbook operations.

Company officials are optimistic after calling 2024 a “year of investment and rebuilding.” They think the 2025 fiscal year could be when BetMGM turns positive. But that hinges heavily on whether BetMGM’s revenue can climb to the company’s projected $2.4 billion to $2.5 billion to achieve EBITDA of $500 million.